Artecity developers file for Chapter 11

Condos in South Beach, Miami Beach real estate

After being faced with the loss of their project to a foreclosure action, the developers of the Artecity condos in South Beach filed for bankruptcy. On Tuesday, the seven entities related to the project made filings in bankruptcy court. The liabilities ranged from $10 million to $50 million.

The filings, by Corus Construction Venture a partnership between the FDIC and Starwood, were made in an effort to stop the foreclosure lawsuit filed in March. Artecity condos in South Beach were intended as a 202 unit project, divided between new a building and a renovation of the Governor Hotel.

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Miami Condos, Miami real estate

Miami Condos, new rules could keep out buyers and hurt builders

New lending rules for buyers of Miami condos are already pushing some developers to change or cancel plans for new projects fearing too many buyers will be shut out.

The Federal Housing Administration, on Monday, started limiting the number of buyers in condo buildings that can get loans insured by the agency. Restrictions were also put on buildings with poor finances, too many delinquent owners and high number of rentals.

These new rules are designed to protect the financial health of the FHA. Approximately 18% of loans insured by the FHA are either late or in foreclosure and the agency's financial level has dropped below the federal minimum.

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Florida Real Estate Developers File Bankruptcy

Two South Florida real estate developers filed for protection under Chapter 11 last week.

315 LLC, the developer of Fort Lauderdale's Strada 315 condo filed for Chapter 11 even after selling 48, about 40 %, of the 117 units in the two months since completing construction. Strada 315 LLC of Delray Beach was denied an extension of a $34.8 million dollar construction loan by Regions Bank on the project at 315 NE Fourth Street in Flagler Village. The builder is affiliated with Delray Beach's Southpoint Realty Development.

Surfside-based Beach House Property LLC, which is connected to Beach House Designed by Richard Meier, at 9449 Collins Ave., filed for Chapter 11 bankruptcy protection on Friday. The 101-unit condo was to break ground on the property of the Beach House Hotel last year.

The company owes its 20 largest unsecured creditors $4.6 million dollars.

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